Russian pyramid scheme operators have turned to crypto en masse, warns Moscow

Group 1: Financial Fraud and Crypto Usage - Two-thirds of Russian financial pyramid scheme operators utilize cryptocurrency, with citizens transferring Bitcoin and other tokens to over 4,600 wallets linked to criminal groups [1] - The central bank identified 7,087 financial pyramids and fraudulent schemes last year, with 80% operating online and a significant portion using cryptocurrency and money mules [1][2] - Nearly 1,500 firms offered fraudulent crypto investments last year, with 84% of scammers using crypto to raise funds, an increase from 77% in 2024 [3] Group 2: Regulatory Actions and Market Monitoring - The central bank has ordered the blocking of 21,500 web pages and social media posts associated with crypto scammers and financial fraud [3] - The bank has committed to enhancing its monitoring of the crypto market and intensifying efforts against crypto-related fraud [4] - Officials have warned the public that only permit-holding firms are authorized to publicly offer investments to Russian retail investors [4] Group 3: Crypto Market Trends - Crypto adoption is increasing in Russia, with citizens reportedly spending $648 million on cryptocurrency daily [2] - Bitcoin has risen by 3.8% in the past 24 hours, trading at $66,566, while Ethereum has increased by over 6%, trading at $1,990 [6]